FCX Freeport McMoRan Inc

By Michael Dabaie

Freeport-McMoRan Inc. (FCX) said Monday that the effect of lower copper prices will reduce second-quarter revenue.

Shares fell about 2%, to $11.39, premarket.

Freeport said it estimates that the mark-to-market effect of lower copper prices will reduce second-quarter revenue by about $85 million. The effect of lower copper prices, including adjustments for provisionally priced sales recorded at March 31, on second-quarter 2019 revenues is estimated to be about $260 million, the company said.

London Metal Exchange copper prices averaged $2.77 per pound during the second quarter, Freeport said. The average three-month forward price at the end of June was $2.72 per pound and will be used to record provisionally priced copper sales. Freeport said it expects its second-quarter copper sales to be recorded at an average price of about $2.73 per pound. At the end of March 31, FCX had provisionally priced copper sales at its copper mining operations at an average of $2.94 per pound.

Based on estimated realized prices and updated gold sales and cost guidance for the second quarter, Freeport said it expects to generate adjusted earnings before interest, taxes and depreciation of about $430 million in second-quarter 2019 and to record about a 5 cent-per-share loss to net income before items.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

July 01, 2019 09:09 ET (13:09 GMT)

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